Low Interest Brings High Interest In Cars

August 31, 1986|by SCOTT J. HIGHAM, The Morning Call

Car dealers in the Lehigh Valley were swamped with checkbook-carrying customers yesterday as the three largest car manufacturers in the country lowered their finance rates to 2.4 and 2.9 percent on many of their models.

"It's a zoo," said John Laba, a salesman at Dick Milham Chevrolet in Bethlehem. "It's my day off, and I've been busy since 8:30 this morning."

On Thursday, General Motors Corp. announced 2.9 percent financing on slow- selling 1986 models. The announcement was followed by similar financing packages from Ford Motor Co. and Chrysler Corp.

Friday night, Ford announced 2.9 percent financing on many truck and car models on 36-month loans. For longer-term financing, the company rate is 9.9 percent.

"I've been biding my time looking for a car," said Curt Silfies as he eyed a Tempo GL in the parking lot of Haldeman Ford on Tilghman Street in Allentown. "But when the interest rates came down, I said, 'Well, they're not going to go any lower than 2.9.' "

Steve Parr, general manager of Haldeman, said that while the number of customers had increased, many were still in the "shopping around" phase. The dealership had sold five cars by 2:30 p.m. yesterday, he said.

In response to the Ford and General Motors offers, Chrysler announced Friday it would offer 2.4 percent on many of its 1986 cars and trucks and even some 1987 models. A Chrysler spokesman said the rate is the lowest ever offered by the manufacturer.

On the first day of Chrysler's low finance package, salesmen at Rothrock Auto Sales in South Whitehall Township sold about 25 Chrysler cars and trucks, said Jim Haskepp, general manager of the dealership. On previous Saturdays, 15 cars and trucks was about average, Haskepp says.

The 2.4 percent rate applies to 24-month loans, the 3.6 rate to 36-month loans, the 4.8 rate to 48-month loans and the 9.9 rate to 60-month loans. The offer covers about 85 percent of Chrysler's cars and trucks, excluding Caravans, Omnis and Horizons, Haskepp said.

"I've been up to my ears in customers," said John Mahon, the business manager for Scott Chevrolet on Lehigh Street in Allentown. Between 9 a.m. and noon yesterday, Mahon said he had sold nine cars. On Friday, the dealership sold 13. "All of our cars, except sport vans and the Spectrum, are part of the program," he said.

Further down the so-called Lehigh Street Auto Mile, salesmen at Haldeman Lincoln-Mercury were still waiting for customers early yesterday. "I haven't seen a huge increase," said Jay Fretz, general sales manager for Haldeman. "The late announcement from Ford kind of hurt us, but I think we'll see an increase in traffic when the news gets around."

At Emmaus Ford, the number of customers had doubled yesterday. "I could use another 15 salespeople," said Mike Cramsey, business manager of the dealership. "It should be a grand slam day."

During the past two days, salesmen at the Nazareth Auto Center sold about 30 cars and trucks, said Bill Pallo, the center's business manager. The dealership normally sells about 10 during the same time period, he said.